A gas supply agreement this also effect was signed yesterday between Brahmaputra Cracker and Polymer Ltd (BCPL), and Oil India Ltd and a naphtha supply agreement was signed between BCPL and Numaligarh Refineries Ltd (NRL).

Brahmaputra Gas Cracker and Polymer Ltd is a joint venture company with Gail as the lead promoter with 70-per cent equity. The other JV partners are OIL, NRL and Assam government, each with a 10-per cent equity.

The signing of feedstock supply agreements with Gail is a major milestone in the execution of the project. The government of Assam has handed over 890 acres of land for the project and BCPL has acquired necessary environmental and pollution clearances.

Dr U D Choubey, chairman and managing director, Gail, who is also the chairman of BCPL said that Gail was committed to ensuring project success and pre-project activities have already been initiated. He disclosed that Engineers India Limited (EIL) had been appointed as the project management consultant (PMC) for the project.

Under the feedstock supply agreements, BCPL will source 6.0 MMSCMD gas from the Oil India Ltd LPG plant at Duliajan, which would be processed to recover C2+ liquid as feedstock for the BCPL petrochemical complex. The remaining gas after recovery of C2+ liquid will be returned.

The petrochemical complex will also utilise 160,000 TPA of petrochemical-grade naphtha from Numaligarh Refinery Limited (NRL). In addition to fuel supplies from OIL and NRL, 1.35 MMSCMD gas from Oil & Natural Gas Corporation Ltd will be utilized by BCPL up to 31 March 2012 and thereafter it will be reduced to 1.00 MMSCMD.

The petrochemical complex will comprise a cracker unit, downstream polymer and integrated off-site / utilities plants. The complex has been configured with a capacity of 220,000 tons per annum (TPA) of ethylene and 60,000 tons per annum of propylene with natural gas and naphtha as feed stock.

Gail''s existing LPG plant at Lakwa will be modified to process gas for recovery of ethane and higher hydrocarbon fraction which will be transported to Lepetkata through a pipeline.

The products from the petrochemical complex would be 220,000 tons per annum (TPA) of HDPE / LLDPE, 60000 TPA of polypropylene, 55000 TPA of raw Pyrolysis gasoline and 12,500 TPA of fuel oil.